Sensex ends flat ahead of inflation, IIP data; Infosys star performer

The BSE Sensex provisionally edged up on Friday after earlier hitting its highest intraday level in nearly a week as stocks of software exporters rose after Infosys Ltd’s quarterly earnings beat market expectations.

Infosys provisionally rose 3.1 percent, while Tata Consultancy Services ended 2.1 percent higher.

[caption id=“attachment_1260665” align=“alignleft” width=“380”]  Reuters[/caption]

“The results of Infosys were a mixed bag. While revenues matched expectations, the margins were better than expectations, largely due to reduced S&M expenses and reduced headcount. The management is positive about the growth going ahead, despite it expecting budgets to remain flat. Attrition has increased to beyond 18% annualized and that remains a concern.

We believe that, the improving demand scenario should bode well for Infosys, which also has several levers to protect and improve margins in FY15. We remain positive on the medium-to-long term prospects of Infosys,” said Dipen Shah, , Head- Private Client Group Research, Kotak Securities

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The Sensexended up 45.12 points at 20758.49, while the Nifty closed at 6171.45, up 3.10 points. About 1030 shares advanced, 1485 shares declined, and 360 shares were unchanged.

Both indexes earlier hit their highest intraday level since Jan 2.

Dalal Stexpects industrial output to return to modest growth in November after shrinking for the first time in four months in October, helped by better overseas demand.

On the global front, Asian markets were mixed following another weak lead from Wall Street as investors awaited the release of key US jobs data, while Shanghai eased after China said its trade surplus shrank in December. On the flip side, European shares rose in early trade on Friday, reversing the previous session’s losses with markets on the euro zone periphery adding to brisk gains made so far this year.